Irvine Great Park Property Tax Question

new2irvinenoob

New member
Hello All-

I'm looking to purchase my first new home around orange county and saw a lot of new developments in the Great Park area. There are a few move-in ready new construction that I could hop on either before the end of the year or in Feb 2023. The sales rep gave me a vague ~20K for property taxes for a particular property (sale price of 1.16Million detached condo) that I would owe if I purchase the new construction property. But when I read the fine print on all the potential special assessment taxes etc, it came out to about $65K. I'm no expert on property tax rate but it seems my calculation is way off. Does anyone have any insight on their property tax bill if they recently recently bought out in Great Park this year?

I was able to get a parcel #, but the county assessor website showed a that a portion of the $65K was from a 1.0% Basic Levy Rate on a land value of 4.5 million which I presume is the tax on the entire land. Maybe I'm not readying it correctly? Just want to be sure I don't get a property tax sticker shock. Again I'm new to the homebuying purchase so I've been trying to understand all the property tax nuance.

Thank you everyone!

Ben
 
Google GP high mello-roos. There are bunch of articles. Or search here on TI. It’s been talked numerous times here.

Basically, GP residents pay special tax for bond that helps building and maintaining all public facilities in the GP. This tax lasts for 40 years and increase 2% annually. After that, it will convert into maintenance fees.



 
GP property tax has two main components. The base rate that everyone pays (1.0 ish percent on purchase price) plus a dollar amount (Mello roos) based on the square footage of your house. Each neighborhood has its own rate schedule so you’ll have to find the one that corresponds to what you’re looking at. I think the new neighborhoods that are selling top out at around $12 or $13k (for 3000ish sf homes) for the Mello Roos component.
 
GP property tax has two main components. The base rate that everyone pays (1.0 ish percent on purchase price) plus a dollar amount (Mello roos) based on the square footage of your house. Each neighborhood has its own rate schedule so you’ll have to find the one that corresponds to what you’re looking at. I think the new neighborhoods that are selling top out at around $12 or $13k (for 3000ish sf homes) for the Mello Roos component.

Don't forget to mention that the Great Park Mello Roos increases 2% per year (you'd be surprised how many buyers don't know that).
 
Hello All-

I'm looking to purchase my first new home around orange county and saw a lot of new developments in the Great Park area. There are a few move-in ready new construction that I could hop on either before the end of the year or in Feb 2023. The sales rep gave me a vague ~20K for property taxes for a particular property (sale price of 1.16Million detached condo) that I would owe if I purchase the new construction property. But when I read the fine print on all the potential special assessment taxes etc, it came out to about $65K. I'm no expert on property tax rate but it seems my calculation is way off. Does anyone have any insight on their property tax bill if they recently recently bought out in Great Park this year?

I was able to get a parcel #, but the county assessor website showed a that a portion of the $65K was from a 1.0% Basic Levy Rate on a land value of 4.5 million which I presume is the tax on the entire land. Maybe I'm not readying it correctly? Just want to be sure I don't get a property tax sticker shock. Again I'm new to the homebuying purchase so I've been trying to understand all the property tax nuance.

Thank you everyone!

Ben
The sales rep is correct. I'm not sure where you get $65k from.

As everyone pointed out, there's the 1.05% base tax plus Mello-Roos. Unlike other areas (Orchard Hills, Eastwood, Portola Springs), where MR is pretty much fixed at around $3800, GP varies with the size of your home.

In your example, it's a detached condo at $1.16M, so it can't be that big, maybe 1500 sq ft or so? As far as I know, the MR in GP starts from roughly $7k and can go as high as $14k. So, for a $1.16M condo, ~$20k for property tax sounds about right.
 
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New2irvinenoob, what is it about Great Park that interests you in buying there? Are you looking for a new or newer home? Have you considered newer resales in Irvine and surrounding areas? The tax rate for new Great Park homes is approx. $1.8% to 1.9% so you'll be looking at a property tax of over $20k for a purchase price around $1.2m You'll also have big negotiation power with quicker move-in homes with the builders (except for Irvine Pacific because they are as flexible an iron bar).

Btw, remember to go good with an agent to register if you go to the new homes sales offices on your first visit so you can split the commission with the agent.
 
Thanks for everyone's input!!!

USC: I actually like the feel of the area. I have tried resales and have been consistently outbid by folks that were either all cash, higher down payments, offered to buy at a higher price point than me, gave up more concessions to sellers (example: buy w/o contingencies, allowing seller to live rent-free for xx months, will pay for home appraisal difference, etc.). I figured now that interest rates are incredibly high, I would face less competition but I'm still facing the same issues. I do realize that the homes I like, may also be liked by very motivated buyers. I'm a fairly straightforward buyer that can put 20% downpayment, in-line DTI ratio, and am not dependent on a homesale as I've been renting. I'm also too stubborn to get into bidding wars which may be what's hindering me (and why I've liked the new construction aspect since I just need to prove to the builder I can close escrow).
 
Thanks for everyone's input!!!

USC: I actually like the feel of the area. I have tried resales and have been consistently outbid by folks that were either all cash, higher down payments, offered to buy at a higher price point than me, gave up more concessions to sellers (example: buy w/o contingencies, allowing seller to live rent-free for xx months, will pay for home appraisal difference, etc.). I figured now that interest rates are incredibly high, I would face less competition but I'm still facing the same issues. I do realize that the homes I like, may also be liked by very motivated buyers. I'm a fairly straightforward buyer that can put 20% downpayment, in-line DTI ratio, and am not dependent on a homesale as I've been renting. I'm also too stubborn to get into bidding wars which may be what's hindering me (and why I've liked the new construction aspect since I just need to prove to the builder I can close escrow).

Times have changed a lot on the resale market and the bidding is gone so you may want to revisit any resale homes that look interesting to you. With new homes, you need to negotiate not only the price but also closing cost and/or design center credits with the builders (except for Irvine Pacific which will tell you to go pound sand). Keep in mind that buyers usually spend at least 5% of the base of the home for upgrades (not including the cost of landscaping which needs to be done 6-12 months after close) either through the builder or after closing. I foresee pricing continuing to bleed lower so time is on your side so wait for the right home before you pull the trigger. Also, stay away from 3-level homes where the living area/kitchen is not on the ground level and there are only bedrooms on the 3rd level (3-level homes with a bonus/loft/deck on the 3rd level is fine). Also remember that for every $500 of Mello Roos per month is equal to about $100k in capitalized value of the home so make sure to compare homes of different HOA and Mello Roos amounts appropriately. Good luck on your search and keep us posted on your progress.
 
Times have changed a lot on the resale market and the bidding is gone so you may want to revisit any resale homes that look interesting to you. With new homes, you need to negotiate not only the price but also closing cost and/or design center credits with the builders (except for Irvine Pacific which will tell you to go pound sand). Keep in mind that buyers usually spend at least 5% of the base of the home for upgrades (not including the cost of landscaping which needs to be done 6-12 months after close) either through the builder or after closing. I foresee pricing continuing to bleed lower so time is on your side so wait for the right home before you pull the trigger. Also, stay away from 3-level homes where the living area/kitchen is not on the ground level and there are only bedrooms on the 3rd level (3-level homes with a bonus/loft/deck on the 3rd level is fine). Also remember that for every $500 of Mello Roos per month is equal to about $100k in capitalized value of the home so make sure to compare homes of different HOA and Mello Roos amounts appropriately. Good luck on your search and keep us posted on your progress.
OP, if I were you, i’d get Martin to represent me buying new place/existing home. He is very reputable on TI. You’ll have your best chance of getting a place you want. Everyone here knows it.
 
2nd'ing Danimal. Martin is worth every penny and more. He's completed hundreds of transactions, has extensive local and macro knowledge to help guide you every step of the way, has a portfolio of proven local contacts to refer you to if needed, and has been crushing it in the RE business for many years. Asking him to work with you will be the best RE decision you've ever made.
 
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My GPN home, zestimated at ~$1.5M. These are my last four years of tax bill amounts, inclusive of the infamous Mello Roos.
17538
17777
17934
18364

It seems to be just 2% increase a year on overall tax bill.

1. If this home was in no MR area, approx. 12k bill would go up by 2% a year.
2. if this home was in older Irvine tracts where MR does not go up, one would see 2% increase on the base $12k, and 0% increase on the MR.
3. By buying in GPN, you are signing up for 2% increase on the MR (approx. 7k for my home) each year.

If you are buying $1.6M home, and worried about $140-200 additional tax bill next year for MR 2% increase, then ....

Better question is, do I like or hate paying MR? What am I getting in exchange of MR, and do I care for those benefits?
 
Times have changed a lot on the resale market and the bidding is gone so you may want to revisit any resale homes that look interesting to you. With new homes, you need to negotiate not only the price but also closing cost and/or design center credits with the builders (except for Irvine Pacific which will tell you to go pound sand). Keep in mind that buyers usually spend at least 5% of the base of the home for upgrades (not including the cost of landscaping which needs to be done 6-12 months after close) either through the builder or after closing. I foresee pricing continuing to bleed lower so time is on your side so wait for the right home before you pull the trigger. Also, stay away from 3-level homes where the living area/kitchen is not on the ground level and there are only bedrooms on the 3rd level (3-level homes with a bonus/loft/deck on the 3rd level is fine). Also remember that for every $500 of Mello Roos per month is equal to about $100k in capitalized value of the home so make sure to compare homes of different HOA and Mello Roos amounts appropriately. Good luck on your search and keep us posted on your progress.

What is the reason to stay away from 3-level homes where the living area/kitchen is not on the ground level? At least all the ones I've seen for newer builds appear to be built this way.
 
What is the reason to stay away from 3-level homes where the living area/kitchen is not on the ground level? At least all the ones I've seen for newer builds appear to be built this way.

There is no reason. Some people just like to push their own personal preferences on others. I would have no issue living in a home like this.

Allegedly they are harder to sell. Which just makes me laugh and laugh. No homes have a hard time selling in Irvine.
 
There is no reason. Some people just like to push their own personal preferences on others. I would have no issue living in a home like this.

Allegedly they are harder to sell. Which just makes me laugh and laugh. No homes have a hard time selling in Irvine.
I have no preference one way or another about 3-level homes. I don't mind it if 3rd floor provides great view over other 2-level homes in the community. Otherwise, I would prefer just 2-level homes, especially if the 3-level homes are like the ones Martin described. The Soria homes at Serrano Summit in Lake Forest are like that. Amara 3X at Serrano Summit and Teresina in Lake Forest are the desirable ones, with third floor deck giving you a nice view. Same with Sierra 2X at Portola Springs, with bonus room plus deck on 3rd floor for view.

Anyway, Martin is a real estate agent representing many buyers and sellers in Irvine, so I would say what he's saying is from experience rather than personal preference. No homes have a hard time selling in Irvine, true....during good times. But I bet 3-level homes are harder to sell RIGHT NOW.
 
What is the reason to stay away from 3-level homes where the living area/kitchen is not on the ground level? At least all the ones I've seen for newer builds appear to be built this way.

Because they are less desirable and trade at lower price per SF due to a lower buyer pool. Think about going shopping at Costco and having to haul everything up the stairs to the kitchen OR you forgot your wallet or keys in your bedroom on the 3rd level while you already came down 2 flights of stairs to the ground level. Also, keep in mind that stairs count as square feet of a home so they are less efficient floor plans. Builders are building up not out because it's cheaper to build up than it is to buy more land.
 
There is no reason. Some people just like to push their own personal preferences on others. I would have no issue living in a home like this.

Allegedly they are harder to sell. Which just makes me laugh and laugh. No homes have a hard time selling in Irvine.

I speak from personal experience, they are harder to sell and rent because the buyer and renter pools are smaller for those kind of homes. And because of this they don't appreciate as well in the good times and depreciate more in the bad times. There is a reason why these homes trade at a considerable price per square foot discount to 2 level homes as I explained why above. Anything will sell if if it's priced appropriately.
 
Because they are less desirable and trade at lower price per SF due to a lower buyer pool. Think about going shopping at Costco and having to haul everything up the stairs to the kitchen OR you forgot your wallet or keys in your bedroom on the 3rd level while you already came down 2 flights of stairs to the ground level. Also, keep in mind that stairs count as square feet of a home so they are less efficient floor plans. Builders are building up not out because it's cheaper to build up than it is to buy more land.

We lived in a second floor apartment for 7 years with 2 babies/toddlers. It was not a big deal to go up the internal stairs after coming in the garage. Keeps you in shape!
 
I speak from personal experience, they are harder to sell and rent because the buyer and renter pools are smaller for those kind of homes. And because of this they don't appreciate as well in the good times and depreciate more in the bad times. There is a reason why these homes trade at a considerable price per square foot discount to 2 level homes as I explained why above. Anything will sell if if it's priced appropriately.

I'm glad to hear they sell at less per sq ft because when we buy, this is the type of home we want!
 
I'm glad to hear they sell at less per sq ft because when we buy, this is the type of home we want!

As long as you like the home then buy it but definitely negotiate hard because when you go to sell it you'll get negotiated down. I just want all my buyers to buy with eyes wide open.
 
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